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EXHIBIT 1.1(a)
[EXECUTION COPY]
$406,790,618
(Approximate)
FIRST UNION RESIDENTIAL SECURITIZATION TRANSACTIONS, INC.
Mortgage Pass-Through Certificates, Series 1998-B
UNDERWRITING AGREEMENT
July 24, 1998
FIRST UNION CAPITAL MARKETS,
a division of WHEAT FIRST SECURITIES, INC.
Xxx Xxxxx Xxxxx Xxxxxx XX-0
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000
SALOMON BROTHERS INC
0 Xxxxx Xxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
First Union Residential Securitization Transactions, Inc. (the
"Depositor"), a North Carolina corporation, is a wholly-owned, special-purpose
subsidiary of First Union National Bank ("FUNB"), a national banking
association. The Depositor has authorized the issuance and sale of its Mortgage
Pass-Through Certificates, Series 1998-B, consisting of (i) Class 1A-1, Class
1A-2, Class 1A-3, Class 1A-4, Class 1A-5, Class 1A-6, Class 1A-7, Class 1A-8,
Class 1A-9, Class 1A-10, Class 1A-11, Class 1A-12, Class 1A-PO, Class 1A-WIO,
Class A-R, Class 1M, Class 1B-1 and Class 1B-2 (collectively, the "Group 1
Offered Certificates"), (ii) Class 1B-3, Class 1B-4, and Class 1B-5
(collectively with the Group 1 Offered Certificates, the "Group 1
Certificates"), (iii) Class 2A, Class 2M, Class 2B-1 and Class 2B-2 (the "Group
2 Offered Certificates"), and (iv) Class 2B-3, Class 2B-4, and Class 2B-5
(collectively with the Group 2 Offered Certificates, the "Group 2
Certificates"). The Group 1 Certificates and the Group 2 Certificates are
collectively referred to herein as the "Certificates". The Certificates evidence
undivided interests in a trust fund (the "Trust Fund") consisting of two
distinct pools of fixed-
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rate mortgage loans (the "Pool 1 Mortgage Loans" and the "Pool 2 Mortgage Loans"
and, together, the "Mortgage Loans"), secured by first deeds of trust and
mortgages on properties that are primarily one- to four-family residential
properties.
Only the Group 1 Offered Certificates are being purchased pursuant to
this Agreement by First Union Capital Markets, a division of Wheat First
Securities, Inc. ("FUCM"), and Salomon Brothers Inc ("Salomon" and, together
with FUCM, the "Underwriters"), severally, in the amount set forth opposite
their names on Schedule A, except that the amount purchased by each Underwriter
may change in accordance with Section 10 of this Agreement. The Group 2 Offered
Certificates will be purchased pursuant to a separate underwriting agreement
(the "Group 2 Underwriting Agreement") among the Depositor, FUNB, FUCM and
PaineWebber Incorporated.
The Certificates will be issued under a pooling and servicing agreement
(the "Pooling and Servicing Agreement"), dated as of July 1, 1998, among the
Depositor, FUNB, as seller (in such capacity, the "Seller"), master servicer (in
such capacity, the "Master Servicer") and trust administrator (in such capacity,
the "Trust Administrator"), and Norwest Bank Minnesota, National Association, as
trustee and document custodian (the "Trustee"). The Group 1 Offered Certificates
will evidence fractional undivided interests in the Trust Fund, but will be
entitled to receive distributions of interest and principal solely from
collections of interest and principal on the Pool 1 Mortgage Loans. The assets
of the Trust Fund will include, among other things, the Mortgage Loans conveyed
to the Trust Fund on July 30, 1998, and such amounts as may be held by the
Trustee in any accounts held by the Trustee for the Trust Fund. The aggregate
undivided interest in the Trust Fund represented by the Group 1 Offered
Certificates initially will be equal to $406,790,618 of principal, which
represents approximately 98.75% of the actual principal balances of the Pool 1
Mortgage Loans as of July 1, 1998 (thc "Cut-Off Date"). Forms of the Pooling and
Servicing Agreement have been filed as exhibits to the Registration Statement
(hereinafter defined).
One or more elections will be made to treat certain segregated pools of
assets of the Trust Fund as "real estate mortgage investment conduits" (each, a
"REMIC") for federal income tax purposes. The Certificates (other than the Class
A-R Certificates) will constitute "regular interests" in a REMIC, and the Class
A-R Certificates will constitute "residual interests" in a REMIC.
The Group 1 Offered Certificates are more fully described in the
Registration Statement (defined below) which the Depositor has furnished to the
Underwriters. Capitalized terms used but not defined herein shall have the
meanings given to them in the Pooling and Servicing Agreement.
Simultaneously with the execution of the Pooling and Servicing
Agreement, the Depositor will enter into a mortgage loan purchase agreement (the
"Purchase Agreement") with the Seller, pursuant to which the Seller will
transfer to the Depositor all of its right, title and interest in and to the
Mortgage Loans as of the Cut-Off Date and the collateral securing each Mortgage
Loan.
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SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR
The Depositor represents and warrants to, and agrees with the
Underwriters that:
(a) A Registration Statement on Form S-3 (No. 333-3574), as amended,
has (i) been prepared by the Depositor in conformity with the requirements of
the Securities Act of 1933, as amended (the "Securities Act"), and the rules and
regulations (the "Rules and Regulations") of the United States Securities and
Exchange Commission (the "Commission") thereunder, (ii) been filed with the
Commission under the Securities Act and (iii) as amended by Pre-Effective
Amendment No. 2 thereto, become effective under the Securities Act. Copies of
such Registration Statement have been delivered by the Depositor to the
Underwriters. As used in this Agreement, "Effective Time" means the date and the
time as of which such Registration Statement, or the most recent post-effective
amendment thereto, if any, was declared effective by the Commission; "Effective
Date" means the date of the Effective Time; "Registration Statement" means such
registration statement at the Effective Time, including any documents
incorporated by reference therein at such time; and "Prospectus" means the final
prospectus, dated July 24, 1998, as first supplemented by a prospectus
supplement, dated July 24, 1998 (the "Prospectus Supplement"), relating to the
Group 1 Offered Certificates and the Group 2 Offered Certificates, as first
filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations.
Reference made herein to the Prospectus shall be deemed to refer to and include
any documents incorporated by reference therein pursuant to Item 12 of Form S-3
under the Securities Act, as of the date of the Prospectus and any reference to
any amendment or supplement to the Prospectus shall be deemed to refer to and
include any document filed under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), after the date of the Prospectus and incorporated by
reference in the Prospectus; and any reference to any amendment to the
Registration Statement shall be deemed to include any report of the Depositor
filed with the Commission pursuant to Section 13(a) or 15(d) of the Exchange Act
after the Effective Time that is incorporated by reference in the Registration
Statement. The Commission has not issued, and the Depositor has not received any
notification that the Commission intends to issue any order preventing or
suspending the use of the Registration Statement. There are no contracts or
documents of the Depositor which are required to be filed as exhibits to the
Registration Statement pursuant to the Securities Act or the Rules and
Regulations which have not been so filed or incorporated by reference therein on
or prior to the Closing Date (defined below). The conditions for use of Form
S-3, as set forth in the General Instructions thereto, have been satisfied.
To the extent that any Underwriter (A) has provided to the Depositor
Collateral Term Sheets (defined below) that such Underwriter has provided to a
prospective investor, the Depositor has filed such Collateral Term Sheets as an
exhibit to a report on Form 8-K within two business days of its receipt thereof,
or (B) has provided to the Depositor Structural Term Sheets or Computational
Materials (each as defined below) that such Underwriter has provided to a
prospective investor, the Depositor will file or cause to be filed with the
Commission a report on Form 8-K containing such Structural Term Sheets and
Computational Material as soon as reasonably practicable after the date of this
Agreement, but in any event not later than the date on
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which the Prospectus is filed with the Commission pursuant to Rule 424 of the
Rules and Regulations.
(b) The Registration Statement conforms, and the Prospectus and any
further amendments or supplements to the Registration Statement or the
Prospectus will, when they become effective or are filed with the Commission, as
the case may be, conform in all respects to the requirements of the Securities
Act and the Rules and Regulations. The Registration Statement, as of the
Effective Date thereof and of any amendment thereto, did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading. The
Prospectus as of its date, and as amended or supplemented as of the Closing Date
does not and will not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided
that no representation or warranty is made as to information contained in or
omitted from the Registration Statement or the Prospectus in reliance upon and
in conformity with written information furnished to the Depositor in writing by
the Underwriters expressly for use therein. The parties hereto acknowledge that
the only information provided by the Underwriters is that information described
in Section 8(h).
(c) The documents incorporated by reference in the Prospectus, when
they became effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Securities Act or
the Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder, and none of such documents contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein
or necessary to make the statements therein not misleading; and any further
documents so filed and incorporated by reference in the Prospectus, when such
documents become effective or are filed with the Commission, as the case may be,
will conform in all material respects to the requirements of the Securities Act
or the Exchange Act, as applicable, and the rules and regulations of the
Commission thereunder, and will not contain an untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
(d) Since the respective dates as of which information is given in the
Prospectus, there has not been any material adverse change in the general
affairs, management, financial condition, or results of operations of the
Depositor, otherwise than as set forth or contemplated in the Prospectus as
supplemented or amended as of the Closing Date.
(e) The Depositor has been duly incorporated and is validly existing as
a corporation in good standing under the laws of its jurisdiction of
incorporation, is duly qualified to do business and is in good standing as a
foreign corporation in each jurisdiction in which its ownership or lease of
property or the conduct of its business requires such qualification, and has all
power and authority necessary to own or hold its properties, to conduct the
business in which it is engaged and to enter into and perform its obligations
under this Agreement, the Pooling and Servicing Agreement and the Purchase
Agreement, and to cause the Certificates to be issued.
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(f) There are no actions, proceedings or investigations pending before
or, to the knowledge of the Depositor, threatened by any court, administrative
agency or other tribunal to which the Depositor is a party or of which any of
its properties is the subject (i) which if determined adversely to the Depositor
would have a material adverse effect on the business or financial condition of
the Depositor, (ii) asserting the invalidity of this Agreement, the Group 2
Underwriting Agreement, the Pooling and Servicing Agreement, the Purchase
Agreement or the Certificates, (iii) seeking to prevent the issuance of the
Certificates or the consummation by the Depositor of any of the transactions
contemplated by the Group 2 Underwriting Agreement, the Pooling and Servicing
Agreement, the Purchase Agreement or this Agreement, as the case may be, or (iv)
which might materially and adversely affect the performance by the Depositor of
its obligations under, or the validity or enforceability of, the Pooling and
Servicing Agreement, the Purchase Agreement, this Agreement or the Certificates.
(g) This Agreement and the Group 2 Underwriting Agreement have been,
and the Pooling and Servicing Agreement and the Purchase Agreement when executed
and delivered as contemplated hereby and thereby will have been, duly
authorized, executed and delivered by the Depositor, and this Agreement and the
Group 2 Underwriting Agreement constitute, and the Pooling and Servicing
Agreement and the Purchase Agreement, when executed and delivered as
contemplated herein, will constitute, legal valid and binding instruments
enforceable against the Depositor in accordance with their respective terms,
subject as to enforceability to (i) applicable bankruptcy, reorganization,
insolvency, moratorium or other similar laws affecting creditors' rights
generally, (ii) general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law), and (iii) with respect to rights
of indemnity under this Agreement, the Group 2 Underwriting Agreement and the
Purchase Agreement, limitations of public policy under applicable securities
laws.
(h) The execution, delivery and performance of this Agreement, the
Group 2 Underwriting Agreement, the Pooling and Servicing Agreement and the
Purchase Agreement by the Depositor and the consummation of the transactions
contemplated hereby and thereby, and the issuance and delivery of the
Certificates do not and will not conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under,
any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Depositor is a party, by which the Depositor is bound or
to which any of the property or assets of the Depositor or any of its
subsidiaries is subject, nor will such actions result in any violation of the
provisions of the articles of incorporation or bylaws of the Depositor or any
statute or any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Depositor or any of its properties or assets.
(i) Deloitte & Touche LLP are independent public accountants with
respect to the Depositor as required by the Securities Act and the Rules and
Regulations.
(j) The direction by the Depositor to the Trustee to execute,
authenticate, issue and deliver the Certificates has been duly authorized by the
Depositor, and assuming the Trustee has
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been duly authorized to do so, when executed, authenticated, issued and
delivered by the Trustee in accordance with the Pooling and Servicing Agreement,
the Certificates will be validly issued and outstanding and will be entitled to
the benefits provided by the Pooling and Servicing Agreement.
(k) No consent, approval, authorization, order, registration or
qualification of or with any court or governmental agency or body of the United
States is required for the issuance of the Certificates and the sale of the
Certificates to the Underwriters, or the consummation by the Depositor of the
other transactions contemplated by this Agreement, the Group 2 Underwriting
Agreement, the Pooling and Servicing Agreement and the Purchase Agreement,
except such consents, approvals, authorizations, registrations or qualifications
as may be required under the Securities Act or state securities or Blue Sky laws
in connection with the purchase and distribution of the Certificates by the
Underwriters or as have been completed or obtained.
(l) The Depositor possesses all material licenses, certificates,
authorities or permits issued by the appropriate state, federal or foreign
regulatory agencies or bodies necessary to conduct the business now conducted by
it and as described in the Prospectus, and the Depositor has not received notice
of any proceedings relating to the revocation or modification of any such
license, certificate, authority or permit which if decided adversely to the
Depositor would, singly or in the aggregate, materially and adversely affect the
conduct of its business, operations or financial condition.
(m) At the time of execution and delivery of the Pooling and Servicing
Agreement, the Depositor will: (i) have good title to the interest in the
Mortgage Loans conveyed by the Seller, free and clear of any lien, mortgage,
pledge, charge, encumbrance, adverse claim or other security interest
(collectively, "Liens"); (ii) not have assigned to any person (other than the
Trustee) any of its right, title or interest in the Mortgage Loans, the Purchase
Agreement or the Pooling and Servicing Agreement; and (iii) have the power and
authority to sell its interest in the Mortgage Loans to the Trustee and to sell
the Group 1 Offered Certificates to the Underwriters. Upon execution and
delivery of the Pooling and Servicing Agreement by the Trustee and any related
instruments of transfer or assignment by the Depositor (except as permitted in
the Pooling and Servicing Agreement), the Trustee will have acquired beneficial
ownership of all of the Depositor's right, title and interest in and to the
Mortgage Loans. Upon delivery to the Underwriters of the Group 1 Offered
Certificates, the Underwriters will have good title to the Group 1 Offered
Certificates free of any Liens.
(n) As of the Cut-Off Date, the Mortgage Loans will meet the
eligibility criteria described in the Prospectus and will conform to the
descriptions thereof contained in the Prospectus.
(o) Neither the Depositor nor the Trust Fund created by the Pooling and
Servicing Agreement is an "investment company" within the meaning of such term
under the Investment Company Act of 1940, as amended (the "1940 Act"), and the
rules and regulations of the Commission thereunder.
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(p) At the Closing Date, the Certificates and the Pooling and Servicing
Agreement will conform in all material respects to the descriptions thereof
contained in the Prospectus.
(q) At the Closing Date, the Group 1 Offered Certificates so designated
in the Prospectus will be "mortgage related securities", as defined in Section
3(a)(41) of the Exchange Act.
(r) Any taxes, fees and other governmental charges in connection with
the execution, delivery and issuance of this Agreement, the Group 2 Underwriting
Agreement, the Pooling and Servicing Agreement, the Purchase Agreement and the
Certificates have been paid or will be paid at or prior to the Closing Date.
(s) At the Closing Date, each of the representations and warranties of
the Depositor set forth in the Pooling and Servicing Agreement will be true and
correct in all material respects.
(t) All Seller-Provided Information (defined below) was true and
correct in all material respects as of the date it was provided to the
Underwriters.
Any certificate signed by an officer of the Depositor and delivered to
the Underwriters or counsel for the Underwriters in connection with an offering
of the Certificates shall be deemed, and shall state that it is, a
representation and warranty as to the matters covered thereby to each person to
whom the representations and warranties in this Section 1 are made.
SECTION 2. PURCHASE AND SALE
The commitment of the Underwriters to purchase the Group 1 Offered
Certificates pursuant to this Agreement shall be deemed to have been made on the
basis of the representations and warranties herein contained and shall be
subject to the satisfaction of the terms and conditions set forth herein. The
Depositor agrees to instruct the Trustee to issue and agrees to sell to the
Underwriters, and the Underwriters agree (except as provided in Sections 10 and
11 hereof) to purchase from the Depositor the Group 1 Offered Certificates at
the purchase price set forth in Schedule A.
SECTION 3. DELIVERY AND PAYMENT
Delivery of and payment for the Group 1 Offered Certificates to be
purchased by the Underwriters shall be made at the offices of Xxxxxxxxxx
Xxxxxxxx LLP, 3500 One First Union Center, 000 Xxxxx Xxxxxxx Xxxxxx, Xxxxxxxxx,
Xxxxx Xxxxxxxx 00000-0000, or at such other place as shall be agreed upon by the
Underwriters and the Depositor, at 10:00 a.m. Charlotte, North Carolina time on
July 30, 1998, or at such other time or date as shall be agreed upon in writing
by the Underwriters and the Depositor (such date being referred to as the
"Closing Date"). Payment shall be made to the Depositor by wire transfer of same
day funds payable to the account of the Depositor. Delivery of the Certificates
shall be made to the Underwriters for the
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account of the Underwriters against payment of the purchase price thereof. The
Group 1 Offered Certificates (other than the Class A-R Certificates) shall be
delivered in book-entry form through The Depository Trust Company in such
denominations and registered in such names as the Underwriters may request in
writing at least two business days prior to the Closing Date. The Class A-R
Certificates shall be registered in such names and delivered to such persons as
the Underwriters may request in writing at least two Business Days prior to the
Closing Date. The Group 1 Offered Certificates will be made available for
examination by the Underwriters no later than 2:00 p.m. Charlotte, North
Carolina time on the first business day prior to the Closing Date.
SECTION 4. OFFERING BY THE UNDERWRITERS
It is understood that, subject to the terms and conditions hereof, the
Underwriters propose to offer the Group 1 Offered Certificates for sale to the
public as set forth in the Prospectus.
SECTION 5. COVENANTS OF THE DEPOSITOR
The Depositor agrees as follows:
(a) To prepare the Prospectus in a form approved by the Underwriters
and to file such Prospectus pursuant to Rule 424(b) under the Securities Act not
later than the Commission's close of business on the second business day
following the execution and delivery of this Agreement; to make no further
amendment or any supplement to the Registration Statement or to the Prospectus
prior to the Closing Date except as permitted herein; to advise the
Underwriters, promptly after it receives notice thereof, of the time when any
amendment to the Registration Statement has been filed or becomes effective or
any supplement to the Prospectus or any amended Prospectus has been filed and to
furnish the Underwriters with copies thereof; to file promptly all reports and
any definitive proxy or information statements required to be filed by the
Depositor with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of
the Exchange Act subsequent to the date of the Prospectus and, for so long as
the delivery of a prospectus is required in connection with the offering or sale
of the Group 1 Offered Certificates, to promptly advise the Underwriters of its
receipt of notice of the issuance by the Commission of any stop order or of: (i)
any order preventing or suspending the use of the Prospectus; (ii) the
suspension of the qualification of the Group 1 Offered Certificates for the
offering or sale in any jurisdiction; (iii) the initiation of or threat of any
proceeding for any such purpose; or (iv) any request by the Commission for the
amending or supplementing of the Registration Statement or the Prospectus or for
additional information. In the event of the issuance of any stop order or of any
order preventing or suspending the use of the Prospectus or suspending any such
qualification, the Depositor promptly shall use its best efforts to obtain the
withdrawal of such order by the Commission.
(b) To furnish promptly to the Underwriters and to counsel for the
Underwriters a signed copy of the Registration Statement as originally filed
with the Commission, including all consents and exhibits filed therewith.
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(c) To deliver promptly to the Underwriters such number of the
following documents as the Underwriters shall reasonably request: (i) conformed
copies of the Registration Statement as originally filed with the Commission and
each amendment thereto (in each case including exhibits); (ii) the Prospectus
and any amended or supplemented Prospectus; and (iii) any document incorporated
by reference in the Prospectus (including exhibits thereto). If the delivery of
a prospectus is required at any time prior to the expiration of nine months
after the Effective Time in connection with the offering or sale of the Group 1
Offered Certificates, and if at such time any events shall have occurred as a
result of which the Prospectus as then amended or supplemented would include any
untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements therein, in the light of the circumstances under
which they were made when such Prospectus is delivered, not misleading, or, if
for any other reason it shall be necessary during such same period to amend or
supplement the Prospectus or to file under the Exchange Act any document
incorporated by reference in the Prospectus in order to comply with the
Securities Act or the Exchange Act, the Depositor shall notify the Underwriters
and, upon the Underwriters' request, shall file such document and prepare and
furnish without charge to the Underwriters and to any dealer in securities as
many copies as the Underwriters may from time to time reasonably request of an
amended Prospectus or a supplement to the Prospectus which corrects such
statement or omission or effects such compliance, and in case the Underwriters
are required to deliver a Prospectus in connection with sales of any of the
Group 1 Offered Certificates at any time nine months or more after the Effective
Time, upon the request of the Underwriters but at its expense, the Depositor
shall prepare and deliver to the Underwriters as many copies as the Underwriters
may reasonably request of an amended or supplemented Prospectus complying with
Section 10(a)(3) of the Securities Act.
(d) To file promptly with the Commission any amendment to the
Registration Statement or the Prospectus or any supplement to the Prospectus
that may, in the judgment of the Depositor or the Underwriters, be required by
the Securities Act or requested by the Commission.
(e) Prior to filing with the Commission any (i) supplement to the
Prospectus, or document incorporated by reference in the Prospectus, or (ii)
Prospectus pursuant to Rule 424 of the Rules and Regulations, to furnish a copy
thereof to the Underwriters and counsel for the Underwriters and obtain the
consent of the Underwriters to the filing.
(f) To use its best efforts, in cooperation with the Underwriters, to
qualify the Group 1 Offered Certificates for offering and sale under the
applicable securities laws of such states and other jurisdictions of the United
States as the Underwriters may designate, and maintain or cause to be maintained
such qualifications in effect for as long as may be required for the
distribution of the Group 1 Offered Certificates. The Depositor will file or
cause the filing of such statements and reports as may be required by the laws
of each jurisdiction in which the Group 1 Offered Certificates have been so
qualified.
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(g) So long as the Group 1 Offered Certificates shall be outstanding,
to deliver to the Underwriters as soon as such statements are furnished to the
Trustee: (i) the annual statement as to compliance delivered to the Trustee
pursuant to Section 3.10 of the Pooling and Servicing Agreement, (ii) the annual
statement of a firm of independent public accountants furnished to the Trustee
pursuant to Section 3.11 of the Pooling and Servicing Agreement; and (iii) the
Monthly Statement furnished to the Certificateholders pursuant to Section 5.2 of
the Pooling and Servicing Agreement.
(h) To apply the net proceeds from the sale of the Group 1 Offered
Certificates in the manner set forth in the Prospectus.
SECTION 6. CONDITIONS TO THE UNDERWRITERS' OBLIGATIONS
The obligations of the Underwriters to purchase the Group 1 Offered
Certificates pursuant to this Agreement are subject to: (1) the accuracy on and
as of the Closing Date of the representations and warranties on the part of the
Depositor herein contained; (2) the performance by the Depositor of all of its
obligations hereunder; and (3) the following conditions as of the Closing Date:
(a) The Underwriter shall have received confirmation of the
effectiveness of the Registration Statement. No stop order suspending the
effectiveness of the Registration Statement or any part thereof shall have been
issued and no proceeding for that purpose shall have been initiated or
threatened by the Commission. Any request of the Commission for inclusion of
additional information in the Registration Statement or the Prospectus shall
have been complied with.
(b) Neither Underwriter shall have discovered and disclosed to the
Depositor on or prior to the Closing Date that the Registration Statement or the
Prospectus or any amendment or supplement thereto contains an untrue statement
of a fact or omits to state a fact which, in the opinion of Xxxxxxx Xxxxxxxxx
Xxxxxxx & Xxxxxxx, L.L.P., counsel for the Underwriters, is material and is
required to be stated therein or is necessary to make the statements therein not
misleading.
(c) All corporate proceedings and other legal matters relating to the
authorization, form and validity of this Agreement, the Pooling and Servicing
Agreement, the Purchase Agreement, the Group 1 Offered Certificates, the
Registration Statement and the Prospectus, and all other legal matters relating
to this Agreement and the transactions contemplated hereby shall be satisfactory
in all respects to counsel for the Underwriters, and the Depositor shall have
furnished to such counsel all documents and information that they may reasonably
request to enable them to pass upon such matters.
(d) Xxxxxxxxxx Xxxxxxxx LLP shall have furnished to the Underwriters
their written opinion, as counsel to the Depositor and FUNB, addressed to the
Underwriters and dated the Closing Date, in form and substance satisfactory to
Fitch IBCA, Inc. ("Fitch"), Xxxxx'x
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Investors Service, Inc. ("Xxxxx'x") and the Underwriters (all of whom shall be
entitled to rely on such opinion as if an addressee), to the effect that:
(i) This Agreement, the Pooling and Servicing Agreement and
the Purchase Agreement, assuming the due authorization, execution and
delivery of such agreements by the other parties thereto, constitute
the legal, valid and binding agreements of the Depositor and FUNB, as
applicable, enforceable against the Depositor and FUNB, as applicable,
in accordance with their terms, subject as to enforceability to (A)
bankruptcy, insolvency, reorganization, moratorium or other similar
laws now or hereafter in effect relating to creditors' rights
generally, (B) the qualification that the remedy of specific
performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion, with respect to
such remedies, of the court before which any proceedings with respect
thereto may be brought, and (C) with respect to rights of indemnity
under this Agreement, the Pooling and Servicing Agreement and the
Purchase Agreement, limitations of public policy under applicable
securities laws.
(ii) The conditions to the use by the Depositor of a
registration statement on Form S-3 under the Securities Act, as set
forth in the General Instructions to Form S-3, have been satisfied with
respect to the Registration Statement and the Prospectus.
(iii) The Registration Statement and any amendments thereto
have become effective under the Securities Act; to the best of such
counsel's knowledge, no stop order suspending the effectiveness of the
Registration Statement has been issued and not withdrawn and no
proceedings for that purpose have been instituted or threatened and not
terminated; and the Registration Statement, the Prospectus and each
amendment or supplement thereto, as of their respective effective or
issue dates (other than the financial and statistical information
contained therein, as to which such counsel need express no opinion),
complied as to form in all material respects with the applicable
requirements of the Securities Act and the Rules and Regulations.
(iv) To the best of such counsel's knowledge, there are no
material contracts, indentures or other documents of a character
required to be described or referred to in the Registration Statement
or the Prospectus or to be filed as exhibits to the Registration
Statement other than those described or referred to therein or filed or
incorporated by reference as exhibits thereto.
(v) The statements in the base Prospectus under the headings
"Summary of Terms--Certain Federal Income Tax Consequences" and
"--ERISA Considerations" and "Certain Legal Aspects of the Mortgage
Loans," "ERISA Considerations" and "Certain Federal Income Tax
Consequences," and the statements in the Prospectus Supplement under
the headings "Summary of Terms of the Offered Certificates--Certain
Federal Income Tax Consequences" and "--ERISA Considerations," "Certain
Federal Income Tax Consequences" and "ERISA Considerations," to the
extent that they constitute matters of federal law or legal conclusions
with respect thereto, have been reviewed by
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such counsel and are correct in all material respects with respects to
those consequences or aspects that are discussed.
(vi) The Pooling and Servicing Agreement and the Group 1
Offered Certificates conform in all material respects to the
description thereof contained in the Prospectus and are not required to
be qualified under the Trust Indenture Act of 1939, as amended, and the
Trust Fund is not required to be registered under the 1940 Act.
(vii) Neither the Depositor nor the Trust Fund is an
"investment company" or under the control of an "investment company" as
such terms are defined in the 1940 Act.
(viii) The Trust Fund as described in the Prospectus
Supplement and the Pooling and Servicing Agreement will qualify as one
or more "real estate mortgage investment conduits" within the meaning
of Section 860D of the Internal Revenue Code of 1986, as amended (the
"Code"), assuming: (A) elections are made to treat the Trust Fund as
one or more REMICs, (B) compliance with the Pooling and Servicing
Agreement and (C) compliance with changes in the law, including any
amendments to the Code or applicable Treasury regulations thereunder.
(ix) The Group 1 Offered Certificates will, when issued,
conform to the description thereof contained in the Prospectus, and the
Classes so designated in the Prospectus will be "mortgage related
securities", as defined in Section 3(a)(41) of the Exchange Act.
(x) FUNB is existing in good standing as a national banking
association organized under the laws of the United States of America.
(xi) FUNB has full corporate power and authority to enter into
and fulfill its obligations under the Purchase Agreement and the
Pooling and Servicing Agreement and to transfer the Mortgage Loans to
the Depositor as contemplated in the Purchase Agreement.
(xii) The Pooling and Servicing Agreement and the Purchase
Agreement have been duly authorized, executed and delivered by the
FUNB.
(xiii) No consent, approval, authorization, order,
registration or qualification of or with any court or governmental
agency or body having jurisdiction over FUNB is required for the
consummation by FUNB of the transactions contemplated by the Pooling
and Servicing Agreement and the Purchase Agreement, except such
consents, approvals, authorizations, registrations and qualifications
as have been obtained.
(xiv) The Depositor has been incorporated and is existing as a
corporation in good standing under the laws of its jurisdiction of
incorporation, is qualified to do business and is in good standing in
North Carolina, and has all power and authority
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necessary to own or hold its properties and to conduct the business in
which it is engaged and to enter into and perform its obligations under
this Agreement, the Pooling and Servicing Agreement and the Purchase
Agreement, and to cause the Certificates to be issued.
(xv) This Agreement, the Group 2 Underwriting Agreement, the
Pooling and Servicing Agreement, and the Purchase Agreement have been
duly authorized, executed and delivered by the Depositor.
(xvi) No consent, approval, authorization, order, registration
or qualification of or with any court or governmental agency or body of
the United States is required for the issuance of the Certificates, and
the sale of the Certificates to the Underwriters, or the consummation
by the Depositor of the other transactions contemplated by this
Agreement, the Group 2 Underwriting Agreement, the Pooling and
Servicing Agreement and the Purchase Agreement, except such consents,
approvals, authorizations, registrations or qualifications as may be
required under the Securities Act or state securities or Blue Sky laws
in connection with the purchase and distribution of the Certificates by
the Underwriters or as have been previously obtained.
(xvii) The direction by the Depositor to the Trustee to
execute, issue, authenticate and deliver the Certificates has been duly
authorized by the Depositor and, assuming that the Trustee has been
duly authorized to do so, when executed, authenticated and delivered by
the Trustee against payment of the agreed upon consideration therefor
in accordance with the Pooling and Servicing Agreement, the
Certificates will be validly issued and outstanding and will be
entitled to the benefits of the Pooling and Servicing Agreement.
Such counsel shall also have furnished to the Underwriters a written
statement addressed to the Underwriters and dated the Closing Date, in form and
substance satisfactory to the Underwriters to the effect that no facts have come
to the attention of such counsel which lead them to believe that: (A) the
Registration Statement (other than (1) the documents incorporated therein by
reference (including, without limitation, any Structural Term Sheets, Collateral
Term Sheets and Computational Materials) and (2) the financial and statistical
information contained therein, as to which no opinion shall be given at the time
it became effective, or at the date of such opinion) contained or contains an
untrue statement of a material fact or omitted or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading and (B) the Prospectus (other than (1) the information incorporated
therein by reference (including, without, limitation, any Structural Term
Sheets, Collateral Term Sheets and Computational Materials) and (2) the
financial, statistical and numerical information contained therein, as to which
no opinion shall be expressed) contains an untrue statement of a material fact
or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.
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(e) The Underwriters shall have received the favorable opinion, dated
the Closing Date, of Xxxxxxxxxx Xxxxxxxx LLP, counsel to the Depositor,
addressed to the Depositor and satisfactory to Fitch, Xxxxx'x and the
Underwriters, with respect to certain matters relating to the transfer of the
Mortgage Loans to the Trust Fund, and such counsel shall have consented to
reliance on such opinion by Fitch and Xxxxx'x as though such opinion had been
addressed to each such party.
(f) The Underwriters shall have received the favorable opinion, dated
the Closing Date, of Xxxxxxxxxx Xxxxxxxx LLP, counsel to FUNB, addressed to the
Depositor and satisfactory to Fitch, Xxxxx'x and the Underwriters, with respect
to certain matters relating to the transfer of the Mortgage Loans to the
Depositor, and such counsel shall have consented to reliance on such, opinion by
Fitch and Xxxxx'x as though such opinion had been addressed to each such party.
(g) FUNB shall have furnished to the Underwriters a written opinion of
counsel to FUNB (who may be an employee of FUNB or of an affiliate of FUNB),
addressed to the Underwriters and dated the Closing Date, in form and substance
satisfactory to the Underwriters, to the effect that:
(i) The execution, delivery and performance of the Pooling and
Servicing Agreement and the Purchase Agreement by FUNB and the
consummation of the transactions contemplated thereby do not and will
not conflict with or result in a material breach or violation of any of
the terms or provisions of, or constitute a default under, any material
indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument known to such counsel and to which FUNB is a party or by
which FUNB is bound or to which any of the property or assets of FUNB
or any of its subsidiaries is subject. Nor will such actions result in
any violation of the provisions of the articles of incorporation or
bylaws of FUNB or any statute or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over FUNB or
any of its properties or assets.
(ii) There are no actions, proceedings or investigations
pending before or, to the best knowledge of such counsel, threatened by
any court, administrative agency or other tribunal to which FUNB is a
party or of which any of its properties is the subject: (A) which if
determined adversely to FUNB would have a material adverse effect on
the business, results of operations or financial condition of FUNB; (B)
asserting the invalidity of the Pooling and Servicing Agreement, the
Purchase Agreement or the Certificates; (C) seeking to prevent the
issuance of the Certificates or the consummation by FUNB of any of the
transactions contemplated by the Pooling and Servicing Agreement or the
Purchase Agreement; or (D) which might materially and adversely affect
the performance by FUNB of its obligations under, or the validity or
enforceability of, the Pooling and Servicing Agreement, the Purchase
Agreement or the Certificates.
(h) Counsel for the Depositor (who may be an employee of FUNB or an
affiliate of FUNB) shall have furnished to the Underwriters its written opinion,
addressed to the
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Underwriters and dated the Closing Date, in form and substance satisfactory to
the Underwriters, to the effect that:
(i) The execution, delivery and performance of this Agreement,
the Group 2 Underwriting Agreement, the Pooling and Servicing Agreement
and the Purchase Agreement by the Depositor, the consummation of the
transactions contemplated hereby and thereby, and the issuance and
delivery of the Certificates do not and will not conflict with or
result in a material breach or violation of any of the terms or
provisions of, or constitute a default under, any material indenture,
mortgage, deed of trust, loan agreement or other agreement or
instrument to which the Depositor is a party or by which the Depositor
is bound or to which any of the property or assets of the Depositor or
any of its subsidiaries is subject, nor will such actions result in any
violation of the provisions of the articles of incorporation or bylaws
of the Depositor or any statute or any order, rule or regulation of any
court or governmental agency or body having jurisdiction over the
Depositor or any of its properties or assets.
(ii) There are no actions, proceedings or investigations
pending before or, to the best knowledge of such counsel, threatened by
any court, administrative agency or other tribunal to which the
Depositor is a party or of which any of its properties is the subject:
(A) which if determined adversely to the Depositor would have a
material adverse effect on the business, results of operations or
financial condition of the Depositor; (B) asserting the invalidity of
the Pooling and Servicing Agreement, the Purchase Agreement or the
Certificates; (C) seeking to prevent the issuance of the Certificates
or the consummation by the Depositor of any of the transactions
contemplated by the Pooling and Servicing Agreement, the Purchase
Agreement, the Group 2 Underwriting Agreement or this Agreement, as the
case may be; or (D) which might materially and adversely affect the
performance by the Depositor of its obligations under, or the validity
or enforceability of, the Pooling and Servicing Agreement, the Purchase
Agreement, the Group 2 Underwriting Agreement, this Agreement or the
Certificates.
(i) The Underwriters shall have received the favorable opinion of
counsel to the Trustee, dated the Closing Date, addressed to the Underwriters
and in form and scope satisfactory to counsel to the Underwriters, which may
include, among other items, opinions to the effect that:
(i) The Trustee has been duly incorporated and is validly
existing as a national banking association in good standing under the
laws of the United States of America.
(ii) The Trustee has duly authorized, executed and delivered
the Pooling and Servicing Agreement, which constitutes the legal, valid
and binding agreement of the Trustee, enforceable against the Trustee
in accordance with its terms, subject, as to enforcement of remedies,
to (A) applicable bankruptcy, insolvency, reorganization, and
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other similar laws affecting the rights of creditors generally, and (B)
to general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(iii) Upon the execution, authentication and delivery of the
Certificates by the Trustee on the Closing Date, the Certificates will
have been duly issued on behalf of the Trust Fund.
(iv) The execution and delivery by the Trustee of the Pooling
and Servicing Agreement and the performance by the Trustee of its
obligations thereunder, including the execution and authentication of
the Certificates, do not conflict with or result in a violation of the
certificate of incorporation or bylaws of the Trustee or any statute or
any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Trustee or any of its properties or
assets.
(v) The Trustee has full power and authority to execute and
deliver the Pooling and Servicing Agreement and to perform its
obligations thereunder.
(vi) There are no actions, proceedings or investigations
pending or threatened against or affecting the Trustee before or by any
court, arbitrator, administrative agency or other governmental
authority which, if decided adversely to the Trustee, would materially
and adversely affect the ability of the Trustee to carry out the
transactions contemplated in the Pooling and Servicing Agreement.
(vii) No consent, approval or authorization of, or
registration, declaration or filing with, any court or governmental
agency or body of the United States of America or any state thereof is
required for the execution, delivery or performance by the Trustee of
the Pooling and Servicing Agreement.
(j) The Underwriters shall have received the favorable opinion or
opinions, dated the date of the Closing Date, of Xxxxxxx Xxxxxxxxx Xxxxxxx &
Xxxxxxx, L.L.P., counsel for the Underwriters, with respect to the issue and
sale of the Certificates, the Registration Statement, this Agreement, the
Prospectus and such other related matters as the Underwriters may reasonably
require.
(k) The Depositor shall have furnished to the Underwriters a
certificate, dated the Closing Date, of its Chairman of the Board, its President
or a Vice President stating that:
(i) The representations and warranties of the Depositor in
Section 1 of this Agreement are true and correct as of the Closing
Date; and the Depositor has complied with all its agreements contained
herein; and
(ii) Such person has carefully examined the Registration
Statement and the Prospectus and, in his or her opinion (A) as of the
Effective Date, the Registration
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Statement and Prospectus did not include an untrue statement of a
material fact and did not omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading, and (B) since the Effective Date no event has occurred
which should have been set forth in a supplement or amendment to the
Registration Statement or the Prospectus.
(l) The Trustee shall have furnished to the Underwriters a certificate
of the Trustee, signed by one or more duly authorized officers of the Trustee,
dated the Closing Date, as to the due authorization, execution and delivery of
the Pooling and Servicing Agreement by the Trustee and the acceptance by the
Trustee of the trusts created thereby and the due execution, authentication and
delivery of the Certificates by the Trustee thereunder and such other matters as
the Underwriters shall reasonably request.
(m) The Group 1 Offered Certificates shall have received the ratings
described in the Prospectus.
(n) The Underwriters shall have received at or before the Closing Date,
from Deloitte & Touche LLP, one or more letters, dated as of the date of this
Agreement, in form reasonably acceptable to the Underwriters (the "Initial
Letters"), and corresponding bring down letters dated as of the Closing Date,
(A) confirming that they are independent public accountants within the meaning
of the Securities Act, and are in compliance with, the applicable requirements
relating to the qualification of accountants under Rule 2-01 of Regulation S-X
of the Commission, (B) stating the conclusions and findings of such firm with
respect to the financial information and other matters covered by its letter,
and (C) in the case of the bring-down letters, confirming in all material
respects the conclusions and finding set forth in the Initial Letters.
(o) Prior to the Closing Date, counsel for the Underwriters shall have
been furnished with such documents and opinions as they may reasonably require
for the purpose of enabling them to pass upon the issuance and sale of the
Certificates as herein contemplated and related proceedings or in order to
evidence the accuracy and completeness of any of the representations and
warranties, or the fulfillment of any of the conditions, herein contained, and
all proceedings taken by the Depositor in connection with the issuance and sale
of the Certificates as herein contemplated shall be satisfactory in form and
substance to the Underwriters and counsel for the Underwriters.
(p) Subsequent to the execution and delivery of this Agreement none of
the following shall have occurred: (i) trading in securities generally on the
New York Stock Exchange, the American Stock Exchange or the Nasdaq Stock Market
shall have been suspended or minimum prices shall have been established on
either of such exchanges or such market by the Commission, by such exchange or
by any other regulatory body or governmental authority having jurisdiction; (ii)
a banking moratorium shall have been declared by federal or state authorities;
(iii) the United States shall have become engaged in hostilities, there shall
have been an escalation of hostilities involving the United States or there
shall have been a declaration of a national emergency or war by the United
States; or (iv) there shall have occurred such a material
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adverse change in general economic, political or financial conditions (or the
effect of international conditions on the financial markets of the United States
shall be such) as to make it, in the judgment of the Underwriters, impractical
or inadvisable to proceed with the public offering or delivery of the
Certificates on the terms and in the manner contemplated in the Prospectus.
If any condition specified in this Section 6 shall not have been
fulfilled when and as required to be fulfilled this Agreement may be terminated
by the Underwriters by notice to the Depositor at any time at or prior to the
Closing Date, and such termination shall be without liability of any party to
any other party except as provided in Section 7.
All opinions, letters, evidence and certificates mentioned above or
elsewhere in this Agreement shall be deemed to be in compliance with the
provisions hereof only if they are in form and substance reasonably satisfactory
to counsel for the Underwriters.
SECTION 7. PAYMENT OF EXPENSES
Each of the Underwriters agrees to pay one-half of the fees and
expenses of Xxxxxxx Xxxxxxxxx Xxxxxxx & Xxxxxxx, L.L.P., as Underwriter's
counsel. Salomon agrees to pay (a) its own expenses arising from its due
diligence with respect to the Mortgage Loans, and (b) all fees and expenses of
qualifying the Certificates under the securities laws of the several
jurisdictions as provided in Section 5(f) hereof and of preparing, printing and
distributing a "Blue Sky Memorandum" (including related fees and expenses of
Blue Sky counsel). The Depositor shall pay all other expenses relating to the
transactions contemplated by this Agreement.
If this Agreement is terminated by the Underwriters in accordance with
the provisions of Section 6, Section 10 or Section 11, the Depositor shall
reimburse the Underwriters for all reasonable out-of-pocket expenses, including
fees and disbursements of Xxxxxxx Xxxxxxxxx Xxxxxxx & Xxxxxxx, L.L.P.
SECTION 8. INDEMNIFICATION AND CONTRIBUTION
(a) (i) The Depositor and FUNB agree to indemnify and hold harmless the
Underwriters, their directors and each person, if any, who controls the
Underwriters within the meaning of Section 15 of the Securities Act
from and against any and all loss, claim, damage or liability, joint or
several, or any action in respect thereof (including, but not limited
to, any loss, claim damage, liability or action relating to purchases
and sales of the Group 1 Offered Certificates), to which the
Underwriters, their directors or any such controlling person may become
subject, under the Securities Act or otherwise, insofar as such loss,
claim, damage, liability or action arises out of, or is based upon, (A)
any untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, (B) the omission or alleged
omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, (C) any
untrue statement or alleged untrue statement of a material fact
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contained in the Prospectus or (D) the omission or alleged omission to
state, in the Prospectus, a material fact required to be stated therein
or necessary to make the statements in the Prospectus, in the light of
the circumstances under which they were made, not misleading and shall
reimburse each Underwriter, each such director and each such
controlling person promptly upon demand for any legal or other expenses
reasonably incurred by such Underwriter, such director or such
controlling person in connection with investigating or defending or
preparing to defend against any such loss, claim, damage, liability or
action, as such expenses are incurred; provided, however, that the
Depositor and FUNB shall not be liable in any such case to the extent
that any such loss, claim, damage, liability or action arises out of,
or is based upon, any untrue statement or alleged untrue statement or
omission or alleged omission made in the Prospectus or the Registration
Statement in reliance upon and in conformity with written information
furnished to the Depositor by or on behalf of any of the Underwriters
specifically for inclusion therein (as specified in Section 8(h)
below). The foregoing indemnity agreement is in addition to any
liability which the Depositor and FUNB may otherwise have to the
Underwriters, its directors or any controlling person of the
Underwriters.
(ii) The Depositor and FUNB agree to indemnify and hold
harmless Salomon, its directors and each person, if any, who controls
Salomon within the meaning of Section 15 of the Securities Act from and
against any and all loss, claim, damage or liability, joint or several,
or any action in respect thereof (including, but not limited to, any
loss, claim, damage, liability or action relating to purchases and
sales of the Group 1 Offered Certificates), to which Salomon, its
directors or any such controlling person may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (A) any untrue
statement or alleged untrue statement of a material fact contained in
any prospectus used after October 28, 1998 (a "Market Making
Prospectus"), or (B) the omission or alleged omission to state therein
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, and shall reimburse Salomon, each such
director and each such controlling person promptly upon demand for any
legal or other expenses reasonably incurred by Salomon, such director
or such controlling person in connection with investigating or
defending or preparing to defend against any such loss, claim, damage,
liability or action, as such expenses are incurred; provided, however,
the Depositor and FUNB shall not be liable in any such case to the
extent that any such loss, claim, damage, liability or action arises
out of, or is based upon, any untrue statement or alleged untrue
statement or omission or alleged omission made in a Market Making
Prospectus in reliance upon and in conformity with written information
furnished to the Depositor by Salomon specifically for inclusion
therein (as specified in Section 8(h) below). The foregoing indemnity
agreement is in addition to any liability which the Depositor and FUNB
may otherwise have to Salomon, its directors or any controlling person
of Salomon under this Agreement.
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(b) (i) Each Underwriter severally agrees to indemnify and hold
harmless the Depositor, each of its directors, each of its officers who
signed the Registration Statement, and each person, if any, who
controls the Depositor within the meaning of Section 15 of the
Securities Act against any and all loss, claim, damage or liability, or
any action in respect thereof, to which the Depositor or any such
director, officer or controlling person may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) an untrue,
statement or alleged untrue statement of a material fact contained in
the Registration Statement, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, (iii) any
untrue statement or alleged untrue statement of a material fact
contained in the Prospectus or (iv) the omission or alleged omission to
state therein a material fact required to be stated in the Prospectus
or necessary to make the statements in the Prospectus, in the light of
the circumstances under which they were made, not misleading, but in
each case only to the extent that the untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the
Depositor by or on behalf of the Underwriters specifically for
inclusion therein (as specified in Section 8(h) below), and shall
reimburse the Depositor and any such director, officer or controlling
person for any legal or other expenses reasonably incurred by the
Depositor or any director, officer or controlling person in connection
with investigating or defending or preparing to defend against any such
loss, claim, damage, liability or action as such expenses are incurred.
The foregoing indemnity agreement is in addition to any liability which
the Underwriters may otherwise have to the Depositor or any such
director, officer or controlling person. Notwithstanding anything to
the contrary contained in this Section 8, Salomon shall have no
obligation to indemnify any party for any loss, claim, damage or
liability or contribute to any such loss, claim, damage or liability in
respect of untrue Statements or alleged untrue statements of material
fact or omissions or alleged omissions to state a material fact
contained in any Market Making Prospectus.
(ii) Salomon shall indemnify and hold harmless FUCM and each
person, if any, who controls FUCM within the meaning of Section 15 of
the Securities Act from and against any loss, claim, damage or
liability, joint or several, and any action in respect thereof, to
which FUCM or any such controlling person may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, any untrue
statement or alleged untrue statement of a material fact contained in
any Computational Materials (defined below) furnished or made available
by Salomon to offerees of the Group 1 Offered Certificates.
FUCM shall indemnify and hold harmless Salomon and each
person, if any, who controls Salomon within the meaning of Section 15
of the Securities Act from and against any loss, claim, damage or
liability, joint or several, and any action in respect thereof, to
which Salomon or any such controlling person may become subject, under
the Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is
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based upon, any untrue statement or alleged untrue statement of a
material fact contained in any Computational Materials furnished or
made available by FUCM to offerees of the Group 1 Offered Certificates.
(c) Promptly after receipt by any indemnified party under this Section
8 of notice of any claim or the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against any
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify an indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure; and, provided further, that the
failure to notify any indemnifying party shall not relieve it from any liability
which it may have to any indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified
party, and it shall notify the indemnifying party thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it
wishes, jointly with any other similarly notified indemnifying party, to assume
the defense thereof with counsel reasonably satisfactory to the indemnified
party. After notice from the indemnifying party to the indemnified party of its
election to assume the defense of such claim or action, the indemnifying party
shall not be liable to the indemnified party under this Section 8 for any legal
or other expenses subsequently incurred by the indemnified party in connection
with the defense thereof other than reasonable costs of investigation.
Any indemnified party shall have the right to employ separate counsel
in any such action and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such indemnified party
unless: (i) the employment thereof has been specifically authorized by the
indemnifying party in writing; (ii) such indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party and in the reasonable judgment of such counsel it is
advisable for such indemnified party to employ separate counsel; or (iii) the
indemnifying party has failed to assume the defense of such action and employ
counsel reasonably satisfactory to the indemnified party, in which case, if such
indemnified party notifies the indemnifying party in writing that it elects to
employ separate counsel at the expense of the indemnifying party, the
indemnifying party shall not have the right to assume the defense of such action
on behalf of such indemnified party, it being understood, however, the
indemnifying party shall not, in connection with any one such action or separate
but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the
reasonable fees and expenses of more than one separate firm of attorneys (in
addition to local counsel) at any time for all such indemnified parties, which
firm shall be designated in writing by the Underwriters, if the indemnified
parties under this Section 8 consist of the Underwriters or any of their
directors and controlling persons, or by the Depositor, if the indemnified
parties under this Section 8 consist of the Depositor or any of the Depositor's
directors, officers or controlling persons.
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Each indemnified party, as a condition of the indemnity agreements
contained in Section 8(a) and (b), shall use its best efforts to cooperate with
the indemnifying party in the defense of any such action or claim. No
indemnifying party shall be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with its written consent or if there be a final
judgment for the plaintiff in any such action, the indemnifying party agrees to
indemnify and hold harmless any indemnified party from and against any loss or
liability by reason of such settlement or judgment.
Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected, without its
written consent if (A) such settlement is entered into more than 30 days after
receipt by such indemnifying party of the aforesaid request and (B) such
indemnifying party shall not have reimbursed the indemnified party in accordance
with such request prior to the date of such settlement.
(d) (i) Each Underwriter agrees to provide the Depositor no later than
two Business Days prior to the day on which the Prospectus Supplement
is required to be filed pursuant to Rule 424 with a copy of its
Structural Term Sheets and Computational Materials (each as defined
below), if any, for filing with the Commission an Form 8-K.
(ii) Each Underwriter agrees to provide the Depositor with its
Collateral Term Sheets no later than one Business Day prior to the day
on which such Collateral Term Sheets are distributed to potential
investors.
(e) Each Underwriter agrees, severally and not jointly, assuming all
Seller-Provided Information (defined below) is accurate and complete in all
material respects, to indemnify and hold harmless the Depositor, each of the
Depositor's officers who sign the Registration Statement and directors and each
person who controls the Depositor within the meaning of Section 15 of the
Securities Act against any and all losses, claims, damages or liabilities, joint
or several, to which they may become subject under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement of a
material fact contained in the Derived Information (defined below) provided by
such Underwriter, or arise out of or are based upon the omission or alleged
omission, when read in conjunction with the Prospectus, to state therein a
material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading, and agrees to reimburse each such indemnified party for any legal or
other expenses reasonably incurred by him, her or it in connection with
investigating or defending or preparing to defend any such loss, claim, damage,
liability or action as such expenses are incurred. The obligations of an
Underwriter under this Section 8(e) shall be in addition to any liability which
such Underwriter may otherwise have.
The procedures set forth in Section 8(c) shall be equally applicable to
this Section 8(e).
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(f) If the indemnification provided for in this Section 8 shall for any
reason be unavailable to or insufficient to hold harmless an indemnified party
under Section 8(a), (b) or (e) in respect of any loss, claim, damage or
liability, or any action in respect thereof, referred to therein, then each
indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the Depositor on the one hand and the Underwriters on the other from
the offering of the Certificates or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law or if the indemnified party failed
to give the notice required under Section 8(c), in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Depositor on the one hand and the
Underwriters on the other with respect to the statements or omissions which
resulted in such loss, claim, damage or liability, or action in respect thereof,
as well as any other relevant equitable considerations.
The relative benefits of the Underwriters and the Depositor shall be
deemed to be in such proportions that the Underwriters are responsible for their
pro rata portion of such losses, liabilities, claims, damages and expenses
determined in accordance with the ratio that the difference between the purchase
price paid to the Depositor by the Underwriters and the aggregate resale price
received by the Underwriters bears to the purchase price paid to the Depositor
by the Underwriters, and the Depositor shall be responsible for the balance.
The relative fault of the Underwriters and the Depositor shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by the Depositor or by the Underwriters, the intent of
the parties and their relative knowledge, access to information and opportunity
to correct or prevent such statement or omission and other equitable
considerations.
The Depositor and the Underwriters agree that it would not be just and
equitable if contributions pursuant to this Section 8(f) were to be determined
by pro rata allocation or by any other method of allocation which does not take
into account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, damage or
liability, or action in respect thereof, referred to above in this Section 8(f),
shall be deemed to include, for purposes of this Section 8(f), any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.
In no case shall the Underwriters be responsible for any amount in
excess of the difference between the purchase price paid to the Depositor by the
Underwriters and the aggregate resale price received by the Underwriters. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.
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(g) For purposes of this Section 8, the term "Derived Information"
means such portion, if any, of the information delivered to the Depositor
pursuant to Section 8(d) for filing with the Commission on Form 8-K as:
(i) is not contained in the Prospectus without taking into
account information incorporated therein by reference;
(ii) does not constitute Seller-Provided Information; and
(iii) is of the type of information defined as Collateral Term
Sheets, Structural Term Sheets or Computational Materials (as such term
are interpreted in the No-Action Letters (defined below)).
"Seller-Provided Information" means the information contained on any computer
tape furnished to the Underwriters by FUNB concerning the assets comprising the
Trust Fund.
The terms "Collateral Term Sheet" and "Structural Term Sheet" shall
have the respective meanings assigned to them in the February 13, 1995, letter
(the "PSA Letter") of Cleary, Gottlieb, Xxxxx & Xxxxxxxx on behalf of the Public
Securities Association (which letter, and the Commission staff's response
thereto, were publicly available February 17, 1995). The term "Collateral Term
Sheet," as used herein, includes any subsequent Collateral Term Sheet that
reflects a substantive change in the information presented. The term
"Computational Materials" has the meaning assigned to it in the May 17, 1994,
letter (the "Xxxxxx Letter" and, together with the PSA Letter, the "No-Action
Letters") of Xxxxx & Xxxx an behalf of Xxxxxx, Peabody & Co., Inc. (which
letter, and the SEC staffs response thereto, were publicly available May 20,
1994).
Each Underwriter shall cooperate with the Depositor and with Deloitte &
Touche LLP in obtaining a letter, in form and substance satisfactory to the
Depositor and such Underwriter, of Deloitte & Touche LLP regarding the
information in any Form 8-K consisting of Computational Materials and/or
Structural Term Sheets furnished by such Underwriter, in each case in XXXXX
format as formatted by the Depositor. Any such letter shall be obtained prior to
the filing of any such Form 8-K with the Commission at the applicable
Underwriter's sole expense.
Each Underwriter represents, warrants to, and covenants with, the
Depositor that the Derived Information prepared by such Underwriter is not
misleading and not inaccurate in any material respect and that any
Seller-Provided Information contained in any Form 8-K prepared by such
Underwriter which is not otherwise inaccurate in any material respect is not
presented in the Form 8-K in a way that is either misleading or inaccurate in
any material respect. Each Underwriter further covenants with the Depositor that
if any Computational Materials or Collateral Term Sheets contained in any Form
8-K prepared by such Underwriter are found to include any information that is
misleading or inaccurate in any material respect, such Underwriter promptly
shall inform the Depositor of such finding, provide the Depositor with revised
and/or corrected Computational Materials or Collateral Term Sheets, as the case
may be,
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and promptly prepare and deliver to the Depositor (in hard copy and XXXXX
format) for filing with the Commission in accordance herewith, revised and/or
corrected Computational Materials or Collateral Term Sheets, as the case may be.
Each Underwriter covenants that all Computational Materials and
Collateral Term Sheets used by it shall contain a legend substantially similar
to or including language substantially similar to the following:
THIS INFORMATION IS FURNISHED TO YOU SOLELY BY [NAME OF UNDERWRITER]
AND NOT BY THE ISSUER OR ANY OF ITS AFFILIATES. NEITHER THE ISSUER NOR
ANY OF ITS AFFILIATES MAKES ANY REPRESENTATION AS TO THE ACCURACY OR
COMPLETENESS OF THE INFORMATION HEREIN. THE INFORMATION HEREIN IS
PRELIMINARY, AND WILL BE SUPERSEDED BY THE APPLICABLE PROSPECTUS
SUPPLEMENT AND BY ANY OTHER INFORMATION SUBSEQUENTLY FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION.
Each Underwriter covenants that all Collateral Term Sheets used by it
shall contain an additional legend substantially similar to or including
language substantially similar to the following:
THIS INFORMATION CONTAINED HEREIN SUPERSEDED BY THE DESCRIPTION OF THE
MORTGAGE LOANS CONTAINED IN THE PROSPECTUS SUPPLEMENT.
Each Underwriter covenants that all Collateral Term Sheets (other than
the initial Collateral Term Sheet) shall contain an additional legend
substantially similar to or including language substantially similar to the
following:
THIS INFORMATION CONTAINED HEREIN SUPERSEDES THE INFORMATION IN ALL
PRIOR COLLATERAL TERM SHEETS, IF ANY.
If an Underwriter does not provide any Computation Materials or
Collateral Term Sheets to the Depositor pursuant to the preceding paragraphs,
such Underwriter shall be deemed to have represented, as of the Closing Date,
that it did not provide any prospective investors with any information in
written or electronic form in connection with the offering of the Certificates
that is required to be filed with the Commission in accordance with the
No-Action Letters, and such Underwriter shall provide the Depositor with a
certification to that effect on the Closing Date.
(h) The Underwriters confirm that the information set forth (i) in the
paragraph preceding the penultimate paragraph on the cover page, (ii) under the
caption "Summary of Terms of the Offered Certificates--Denominations" in the
Prospectus Supplement and (iii) in the first paragraph under the caption
"Underwriting" in the Prospectus Supplement is correct and,
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except for the additional information noted in the following sentence,
constitutes the only information furnished in writing to the Depositor by or on
behalf of the Underwriters specifically for inclusion in the Registration
Statement and the Prospectus. In addition, FUCM confirms that the information
set forth (i) in the penultimate paragraph on the cover page and (ii) in the
second and third paragraphs under the caption "Underwriting" in the Prospectus
Supplement is correct and has been furnished in writing to the Depositor by FUCM
specifically for inclusion in the Registration Statement and the Prospectus.
SECTION 9. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE
DELIVERY
All representations, warranties and agreements contained in this
Agreement or contained in certificates of officers of the Depositor submitted
pursuant hereto shall remain operative and in full force and effect, regardless
of any investigation made by or on behalf of the Underwriters or controlling
persons thereof, or by or an behalf of the Depositor and shall survive delivery
of any Certificates to the Underwriters.
SECTION 10. DEFAULT BY ONE OF THE UNDERWRITERS
If one of the Underwriters participating in the public offering of the
Group 1 Offered Certificates shall fail at the Closing Date to purchase the
Group 1 Offered Certificates which it is obligated to purchase hereunder (the
"Defaulted Certificates"), then the non-defaulting Underwriter shall have the
right, within 24 hours thereafter, to purchase all, but not less than all, of
the Defaulted Certificates in such amounts as may be agreed upon and upon the
terms herein set forth. If, however, the non-defaulting Underwriter has not
completed such arrangements within such 24-hour period, then:
(a) if the aggregate principal amount of Defaulted
Certificates does not exceed 10% of the aggregate principal amount of
the Group 1 Offered Certificates to be purchased pursuant to this
Agreement, the non-defaulting Underwriter shall be obligated to
purchase the full amount thereof, or
(b) if the aggregate principal amount of Defaulted
Certificates exceeds 10% of the aggregate principal amount of the Group
1 Offered Certificates to be purchased pursuant to this Agreement, this
Agreement shall terminate, without any liability on the part of the
non-defaulting Underwriter.
No action taken pursuant to this Section 10 shall relieve a defaulting
Underwriter from the liability with respect to any default of such Underwriter
under this Agreement.
In the event of a default by any Underwriter as set forth in this
Section 10, the non-defaulting Underwriter and the Depositor shall have the
right to postpone the Closing Date for a period not exceeding five Business Days
in order that any required changes in the Registration Statement or Prospectus
or in any other documents or arrangements may be effected.
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In no event shall either Underwriter have any liability for or
obligations arising from the failure of an underwriter under the Group 2
Underwriting Agreement to perform in accordance with the terms of such Group 2
Underwriting Agreement.
SECTION 11. TERMINATION OF AGREEMENT
The Underwriters may terminate this Agreement immediately upon notice
to the Depositor, at any time at or prior to the Closing Date if any of the
events or conditions described in Section 6(p) of this Agreement shall occur and
be continuing. In the event of any such termination, the covenant set forth in
Section 5(g), the provisions of Section 7, the indemnity agreement set forth in
Section 8, and the provisions of Sections 9 and 13 shall remain in effect.
SECTION 12. NOTICES
All statements, requests, notices and agreements hereunder shall be in
writing, and:
(a) if to First Union Capital Markets, a division of Wheat First
Securities, Inc., shall be delivered or sent by mail, telex or facsimile
transmission to Xxx Xxxxx Xxxxx XX-0, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000,
Attention: Xxxxxxx X. Xxxxx (Fax: (000) 000-0000), and if to Salomon Brothers
Inc, to 7 World Trade Center, 40th Floor, New York, New York 10048 Attention:
Mortgage Finance (Fax: (000) 000-0000) with a copy to the General Counsel's
office; or
(b) if to the Depositor, shall be delivered or sent by mail, telex or
facsimile transmission to First Union Residential Securitization Transactions,
Inc., 000 Xxxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention:
Xxxxxxx X. Xxxxx (Fax (000) 000-0000).
SECTION 13. PERSONS ENTITLED TO THE BENEFIT OF THIS AGREEMENT
This Agreement shall inure to the benefit of and be binding upon the
Underwriters and the Depositor, and their respective successors. This Agreement
and the terms and provisions hereof are for the sole benefit of only those
persons, except that the representations, warranties, indemnities and agreements
contained in this Agreement shall also be deemed to be for the benefit of the
person or persons, if any, who control any of the Underwriters within the
meaning of Section 15 of the Securities Act, and for the benefit of directors of
the Depositor, officers of Depositor who have signed the Registration Statement
and any person controlling the Depositor within the meaning of Section 15 of the
Securities Act. Nothing in this Agreement is intended or shall be construed to
give any person, other than the persons referred to in this Section 13, any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision contained herein.
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SECTION 14. SURVIVAL
The respective indemnities, representations, warranties and agreements
of the Depositor and the Underwriters contained in this Agreement, or made by or
on behalf of them, respectively, pursuant to this Agreement, shall survive the
delivery of and payment for the Certificates and shall remain in full force and
effect, regardless of any investigation made by or on behalf of any of them or
any person controlling any of them.
SECTION 15. DEFINITION OF THE TERM "BUSINESS DAY"
For purposes of this Agreement, "Business Day" means any day other than
(a) a Saturday or Sunday, or (b) a legal holiday in the States of New York or
North Carolina or (c) a day on which banking or savings and loan institutions in
the States of New York or North Carolina or the state in which the Corporate
Trust Office is located are authorized or obligated by law or executive order to
be closed or (d) a day on which the New York Stock Exchange, Inc. is closed for
trading.
SECTION 16. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with
the laws of the State of North Carolina, without giving effect to the conflicts
of laws provisions thereof.
SECTION 17. COUNTERPARTS
This Agreement may be executed in counterparts and, if executed in more
than one counterpart, the executed counterparts shall each be deemed to be an
original but all such counterparts shall together constitute one and the same
instrument.
SECTION 18. HEADINGS
The headings herein are inserted for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of,
this Agreement.
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If the foregoing Underwriting Agreement correctly sets forth the
agreement between the Depositor and the Underwriters, please indicate your
acceptance in the space provided for that Purpose below.
Very truly yours,
FIRST UNION RESIDENTIAL
SECURITIZATION TRANSACTIONS, INC.
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
FIRST UNION NATIONAL BANK
By: /s/ Xxxxxxx X. Xxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
CONFIRMED AND ACCEPTED, as of the date first above written:
FIRST UNION CAPITAL MARKETS,
a division of WHEAT FIRST SECURITIES, INC.
By: /s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Managing Director
SALOMON BROTHERS INC
By: /s/ Xxxx X. Xxxxxx
-----------------------------------------
Name: Xxxx X. Xxxxxx
Title: Vice President
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SCHEDULE A
TITLE AND DESCRIPTION OF THE GROUP 1 OFFERED CERTIFICATES
Mortgage Pass-Through Certificates, Series 1998-B, Class 1A-1, Class 1A-2, Class
1A-3, Class 1A-4, Class 1A-5, Class 1A-6, Class 1A-7, Class 1A-8, Class 1A-9,
Class 1A-10, Class 1A-11, Class 1A-12, Class 1A-PO, Class 1A-WIO, Class A-R,
Class 1M, Class 1B-1 and Class 1B-2
Underwriting Agreement, dated as of July 24, 1998
Cut-off Date: July 1, 1998
Class Designation Certificate Principal Portion of Certificate Portion of Certificate Initial Pass Rating(3)
----------------- Balance or Class Principal Balance or Principal Balance or Through Rate Purchase Fitch/Xxxxx'x)
Notional Amount(1) Notional Amount to be Notional Amount to be ------------ Price(2) --------------
--------------------- Purchased by Salomon(1) Purchased by FUCM(1) --------
----------------------- ----------------------
Class 1A-1 $ 23,175,000 $ 11,587,500 $ 11,587,500 6.75% 99.34375 AAA/Aaa
Class 1A-2 5,000,000 2,500,000 2,500,000 6.75% 99.34375 AAA/Aaa
Class 1A-3 124,054,000 62,027,000 62,027,000 6.75% 99.34375 AAA/Aaa
Class 1A-4 45,000,000 22,500,000 22,500,000 6.75% 99.34375 AAA/Aaa
Class 1A-5 15,145,000 7,572,500 7,572,500 6.75% 99.34375 AAA/Aaa
Class 1A-6 100,000,000 50,000,000 50,000,000 6.75% 99.34375 AAA/Aaa
Class 1A-7 776,000 388,000 388,000 6.75% 99.34375 AAA/Aaa
31
Class Designation Certificate Principal Portion of Certificate Portion of Certificate Initial Pass Rating(3)
----------------- Balance or Class Principal Balance or Principal Balance or Through Rate Purchase Fitch/Xxxxx'x)
Notional Amount(1) Notional Amount to be Notional Amount to be ------------ Price(2) --------------
--------------------- Purchased by Salomon(1) Purchased by FUCM(1) --------
----------------------- ----------------------
Class 1A-8 6,589,000 3,295,000 3,294,000 6.75% 99.34375 AAA/Aaa
Class 1A-9 18,048,000 2,000,000 16,048,000 6.75% 99.34375 AAA/Aaa
Class 1A-10 41,194,000 20,597,000 20,597,000 6.75% 99.34375 AAA/Aaa
Class 1A-11 11,155,764 11,155,764 -0- 6.5063% 99.34375 AAA/Aaa
Class 1A-12 2,892,236 2,892,236 -0- 7.689985% 99.34375 AAA/Aaa
Class 1A-PO 372,518 -0- 372,518 0.00% 70.000 AAA/Aaa
Class 1A- WIO 378,009,974 -0- 378,009,974 0.4291% 1.6367 AAA/Aaa
Class A-R 100 -0- 100 6.75% (4) AAA/Aaa
Class 1M 6,180,000 -0- 6,180,000 6.75% 99.6875 AA/Aa
Class 1B-1 5,149,000 -0- 5,149,000 6.75% 98.90625 A/A
Class 1B-2 2,060,000 -0- 2,060,000 6.75% 96.7500 BBB/Baa
--------------------
(1) Subject to a variance of plus or minus 5.0%
(2) Expressed as a percentage of the Certificate Principal Balance or Class
Notional Amount of the relevant Class of Group 1 Offered Certificates
to be purchased, except with respect to the Class A-R Certificate. In
addition, as to each Class of the Group 1 Offered Certificates, the
Underwriters will pay the Depositor accrued interest at the initial
Pass-Through Rate therefor from the Cut-Off Date to but not including
the Closing Date.
(3) By Fitch and Xxxxx'x, as indicated.
(4) $ (20,000)
